Great effort is made to minimize risk as much as possible but risk is always present, even more so with Canadian stocks which tend to have a price point below five dollars. As a general rule of thumb you take your age minus 100 and that is the invest percentage of your portfolio which should be in stocks. (35 yrs old -100 = 65% of your portfolio should be equities)
There are a number of aspects to calculating a good pick and low risk entries to Canadian Stocks. You can use these factors on your own or simply follow our opinions. A couple of these factors include recent industry news and events, upcoming company earnings, and growth history. There are of course other technical factors used in this selection as well. Watching the industry of an individual stock is very important.
The behavior of any stock depends on the direction of the industry sector it falls under. Canadian stocks are definitely sensitive by nature to this and are typically commodity based. If you own a Canadian stock in the oil industry and the price of oil starts to go down then you be hard pressed to be see any gains. This is not to say that stocks can’t go up in value during an industry downward trend because they can but in general it is the opposite.
If you get your hand on a juicy piece of information about a company before it hits the news stands you are going to make some serious money. Usually the best information to get your hands on is the fact that a company is about to launch a new marketing campaign. It’s harder to swim against the current the float with it.
Company earnings mean more stock awareness which means more traders and investors which means results in more in/out flows of money. Stay on the edge of the news and you will profit tremendously. Past performance is indicative of future performance. We only hold stocks over earning based on our time frame of the trade. Our Canadian dividend stock picks are typically held over earning due to the time period of the trade which tends to be either semi annually to multiple year swings. We also have top Canadian stock picks which are shorter in time periods that range from weeks to quarters or really until our profit target is hit… we take profits!
We have our own list of factors that we utilize to determine our best Canadian stocks. Never invest with money you cannot afford to lose but don’t be afraid to limit your risk and lock in gains with us here at CDN!